China to explore oil, gas in Sar-i-Pul
Chairing a Cabinet meeting, President Hamid Karzai directed Minister of Mines Wahidullah Shahrani to finalise the deal with the government-controlled Chinese firm.
Under the proposed accord, the Chinese company will jointly explore with the Afghan firm, Watan Group, gas and oil reserves in the Qashqari, Bazaar Kami and Zamrudsai areas of Sar-i-Pul.
A statement from Karzai's office said oil reserves in the field were estimated at 87 million barrels. Under the agreement, China will pay the Afghan government 15 percent of income from the oil in royalty and 20 percent in tax.
Seventy percent of the oil will be provided to Afghanistan, according to the statement, which said the first-ever comprehensive agreement would pave the ground for establishing an oil refinery in Afghanistan.
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